The last 4 units of ‘sea-facing’ bungalows in Gurney Drive sold for over RM20mil
Image Source: Google Street View
One of Malaysia’s most high-end neighbourhoods, Gurney Drive, has proven it is real estate gold after Hong Kong investors snapped up four bungalows in the area for over RM20mil.
The bungalows are the “last stretch” of old properties along Gurney Drive, which has been named in international publications as one of the best places to check out for culinary delights.
If all the stars align for these owners, real estate brokers say that the newly acquired assets can bring in a yield of at least RM130mil after about 10 years.
The investment involves a row of four two-storey houses facing a row of casuarina trees along Gurney Drive.
Real estate investors from abroad have been eyeing Gurney Drive for some time, buying up old landed properties at over RM1,000 per sq ft.
As a comparison, the average gross selling prices of new luxury high-rise residences in Kuala Lumpur ranged between RM750 per sq ft and RM960 per sq ft in the first half of 2021.
Another survey of high-rise residential properties in Klang Valley found that a two-bedroom unit in KLCC cost an average of RM1,079 per sq ft.
Covering a total area of a little over 2,700 sq m – or around 29,062 sq ft – the land the four houses sit on is almost as big as that of two Olympic-sized swimming pools.
“It’s all about the location. They (investors) are not put off by the development guidelines or local council regulations.
Actual location:
“The Gurney Drive area is where development is expected to be the most pronounced on the island in the future so they bought the houses,” said a real estate broker who asked not to be named.
Attempts to speak to the new Hong Kong owners have not been successful.
Featuring wooden walls on the top storey with brick-and-mortar ground floor structures, the four houses are surrounded by high-rise hotels and condominiums.
Real estate agent David Lim revealed that one of the vacant houses, which used to house Carnation Bak Kut Teh, is being offered for rent at RM14,000 a month.
When told about the Hong Kong investors, another property developer said it would be “a good buy” if the bungalows were within the commercial zone of a plot ratio of 1:5.
A plot ratio means the total allowable gross floor area that can be developed over the size of the land area.
If the plot ratio for the combined land of about 2,700 sq m is 1:5, a development with a total floor space of about 13,500 sq m is possible.
Going by the RM900 per sq ft median price quoted over the Internet for strata properties in Gurney Drive currently on sale, this will result in a potential gross development value of at least RM130mil from these four houses.
“As long as those old houses can be demolished, there can be many possibilities. You can have a mixed development. It can be a hotel, serviced apartment, offices … many things,” said the developer.
For the record, the median house price last year was highest in Putrajaya at RM628,000, followed by Kuala Lumpur at RM490,000 and Selangor at RM410,000.
Penang is at seventh place with a median price of RM317,000, according to data from the National Property Information Centre.
The island has been captivating Hong Kong buyers in the past few years, with a number of celebrities, including superstars Jackie Chan, Andy Lau and Simon Yam said to own homes here.
Source: TheStar.com.my
It is actually no big deal lah, just some agents trying to create a buzz. RM20mil for 4 bungalows, RM5 mil each, for RM5 mil, you can only buy a 800ft condo in HongKong. These so-called HongKong buyers sound amateurs. Will they make money in the end? I doubt. They would most probably get conned by the locals into doing all sorts of things which require paying for lots of services, but in the end, will realize local policies and local incomes would work against their wishful thinking.
Must be Paul Lim agent making the hu ha, the one who laugh at Grab driver.
Why RM20mil ??? It this a con case by Paul Lim, this area can sell RM200mil !!! Call me, I can find agent for RM200mil for this piece of area.
20m is a steal. I doubt the accuracy of this report…..
@Oh nice
No no, it’s not a steal at all. It is actually a very narrow strip of land, you can’t do major redevelopment as you will have nothing left after set back, which is MBPP requirement. I’d say the buyers got conned.
redevelopment certainly involved lots of procedures and approval, in order to break the barriers I don’t need to tell you what is going to happen
@vicky
Yes indeed. plenty of boaster agent in Penang.
@LEE
If you have time, drop by Song River coffee shop, then you look towards Sunrise Gurney, that tells you how much setback (front and back) you need for redevelopment, and you would probably conclude that there will be no land left here!! Hahaha, but you are right, even under rocket, barriers can be broken, palms can be smoothed, business as usual.
if other developer can build 29 storey condominium on 2 bungalow lot , everything is possible, look how skinny the marriott residence is…LOL
Under the current gov, which is always pro to developer, you submit building 4 tower of Taiwan 101 under this 4 plot will be no problem at all. The fake accountant will be more than happy to approve it and might counter propose to the developer to build Burj Khalifa of Dubai in this plot, trust me, it will be approved like like thunder speed.
Thanks to the pro-developer goverment in the power now. Taiwan 101 or Dubai Burj Khalifa, you name it, you got it to approved.
@Oh nice
Marriott residence is a luxury project not skinny by Greenery BSG. Hotel/Service suites & Residence under 1 package. One of the best development in Asia pacific. It should sell from rm2000psf onwards after Key collection. Keep my word.
New development of 4 Banglo won’t be possible to trun into condo but time only will know if surrounding will be sold to those Kingkong richman. Better than away from this congested area. Nothing to be proud of. Plenty happenning now in Southern part of Island Queensbay area very much better for residential now than over goreng MM2H area In northen part with super jam & traffic flow. Everyday even to go Tanjung Tokong also suffering to go through those skinny road in Gurney drive.
so this is a hoax, 2 of the owners said they will are not selling after knowing the land can sell RM200mil. Paul Lim scam plan are exposed.
@cindy woo
Here you go again Agent. From Queensbay to Gurney.
Goreng Goreng owner & try to ask them sell faster & lelong this & that. No value added fact here. I guess you & paul are scammer.
@KumbarPavilion
This is Rm200mil range club is out of your affordability, not in your life time you will afford. go back to hold tight your Quaywest RM700k unit as I will give you attention there for sure. don’t feel rush don’t feel panic as seaview will be blocked for sure on Quaywest. ho ho ho
@cindy woo
Hohoho.. I feel very proud to be a Quaywest owner because this agent with 200million club come to challenge & worry us about project seafront blocked in future. It’s showing that Quaywest is more than 200 million here. Hohoho..nice.
@cindy woo
I believe you & him no different as you asking people faster sell their unit before lelong. And now you said people out of affordability.hohoho..Seen like we have roti canai or capati or mee goreng here from this agent..
@cindy woo
20mil is a very good deal even infuture block or unblocked. However your comment.. This is a very serious humiliating. Even you angry or annoyed, you shouldn’t underestimate a person affordability. Today maybe he/she can’t. We don’t know after 5 years or 10 years. It shouldn’t come out from your mouth too. Probably admin should avoid or filter this problematic comment from those people.